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Kforce (KFRC) to Report Q1 Earnings: What's in the Cards?
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Staffing company Kforce Inc. (KFRC - Free Report) is scheduled to report first-quarter 2017 results after market close on May 2.
In the last reported quarter, Kforce beat earnings by 4 cents. The company topped earnings estimates thrice in the trailing four quarters with an average positive earnings surprise of 3.94%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Kforce provides professional and technical specialty staffing services and solutions globally. The company is in a restructuring mode as it continues to divest non-core operations and invest the proceeds in higher-growth markets.
KForce expects skilled technology demand to be high as companies are becoming increasingly dependent on the efficiencies provided by technology and the need for innovation and strategies. Particularly, technology investment, mobility, cloud computing, cyber security, eCommerce, digital marketing, big data and business intelligence contributed to the demand landscape for technology resources.
Advancement in these areas is likely to be critical across all industries for companies to remain competitive and meet the evolving customer expectations. The shortage of supply of these resources and the need for specialized skill sets will continue to drive demand.
The company’s business is subject to government regulations and licensing. The failure to obtain all necessary licenses or approvals could adversely affect Kforce’s financial results. In addition, softness in the labor market and increased competitive pressure remain concerns for the company.
Due to a challenging macroeconomic environment, Kforce has been facing significant declines in a few of its largest clients over the past few quarters. Business disruption and internal organizational challenges faced by these clients impacted its overall revenues and is likely to remain concerns in the impending quarter as well.
Management expect to continue making selective investments in revenue-generating talent. The company believes with the current mix of tenure in its talent population and improved productivity levels from investments, there is still ample opportunity to increase revenues.
Earnings Whispers
Our proven model does not conclusively show that Kforce is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a successful earnings beat. This is not the case here as you will see below:
Zacks ESP: Kforce has an Earnings ESP of 0.00%. This is because both Most Accurate estimate and Zacks Consensus Estimate stand at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Kforce has a Zacks Rank #3. This when combined with a 0.00% ESP makes earnings prediction uncertain.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some stocks within the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Altra Industrial Motion Corp. , with an Earnings ESP of +5.00%, and a Zacks Rank #2.
Adient plc (ADNT - Free Report) , with an Earnings ESP of +1.64%, and a Zacks Rank #3.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Kforce (KFRC) to Report Q1 Earnings: What's in the Cards?
Staffing company Kforce Inc. (KFRC - Free Report) is scheduled to report first-quarter 2017 results after market close on May 2.
In the last reported quarter, Kforce beat earnings by 4 cents. The company topped earnings estimates thrice in the trailing four quarters with an average positive earnings surprise of 3.94%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Kforce provides professional and technical specialty staffing services and solutions globally. The company is in a restructuring mode as it continues to divest non-core operations and invest the proceeds in higher-growth markets.
KForce expects skilled technology demand to be high as companies are becoming increasingly dependent on the efficiencies provided by technology and the need for innovation and strategies. Particularly, technology investment, mobility, cloud computing, cyber security, eCommerce, digital marketing, big data and business intelligence contributed to the demand landscape for technology resources.
Advancement in these areas is likely to be critical across all industries for companies to remain competitive and meet the evolving customer expectations. The shortage of supply of these resources and the need for specialized skill sets will continue to drive demand.
The company’s business is subject to government regulations and licensing. The failure to obtain all necessary licenses or approvals could adversely affect Kforce’s financial results. In addition, softness in the labor market and increased competitive pressure remain concerns for the company.
Due to a challenging macroeconomic environment, Kforce has been facing significant declines in a few of its largest clients over the past few quarters. Business disruption and internal organizational challenges faced by these clients impacted its overall revenues and is likely to remain concerns in the impending quarter as well.
Management expect to continue making selective investments in revenue-generating talent. The company believes with the current mix of tenure in its talent population and improved productivity levels from investments, there is still ample opportunity to increase revenues.
Earnings Whispers
Our proven model does not conclusively show that Kforce is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a successful earnings beat. This is not the case here as you will see below:
Zacks ESP: Kforce has an Earnings ESP of 0.00%. This is because both Most Accurate estimate and Zacks Consensus Estimate stand at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kforce, Inc. Price and EPS Surprise
Kforce, Inc. Price and EPS Surprise | Kforce, Inc. Quote
Zacks Rank: Kforce has a Zacks Rank #3. This when combined with a 0.00% ESP makes earnings prediction uncertain.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some stocks within the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
AGCO Corporation (AGCO - Free Report) , with an Earnings ESP of +5.88%, and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion Corp. , with an Earnings ESP of +5.00%, and a Zacks Rank #2.
Adient plc (ADNT - Free Report) , with an Earnings ESP of +1.64%, and a Zacks Rank #3.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>